Homebuilder KB Home's Q3: Earnings Beat, 14% Topline Decline, Lower Average Selling Price & More
Portfolio Pulse from Shivani Kumaresan
KB Home (NYSE:KBH) reported a Q3 FY23 sales decline of 13.9% YoY to $1.59 billion, beating the analyst consensus of $1.48 billion. The average selling price fell 8.3% to $466,300. The company's homebuilding operating income plunged 44.8% to $179.2 million. However, net orders for Q3 grew 52% to 3,097, and net order value rose 54% to $1.51 billion. The company expects FY23 housing revenue of $6.31 billion, up from the prior view of $5.80 billion-$6.20 billion.
September 21, 2023 | 9:57 am
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Despite a decline in sales and average selling price, KB Home beat analyst estimates and reported growth in net orders. The company also raised its FY23 housing revenue forecast.
KB Home's Q3 results show a mixed picture. While sales and average selling price declined, the company beat analyst estimates and reported a significant growth in net orders. This suggests that despite current challenges, the company is seeing strong demand. The raised FY23 housing revenue forecast also indicates a positive outlook. However, the impact on the stock price is uncertain due to the mixed results.
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